Spain is heading for a cyber hunt: crypto assets as collateral for debts to the treasury

The Spanish Ministry of Finance is directing its efforts to strengthen control over cryptocurrency transactions in an effort to combat fiscal violations and tax evasion. According to a publication in El Economista, as part of the reform of the General Fiscal Legislation, it is planned to introduce new measures to monitor crypto assets with the possibility of their confiscation to repay tax debts.

The recently enacted Royal Decree, which was adopted on February 1, expands the list of organizations authorized to collect taxes, going beyond only banks, savings banks and credit cooperatives. This measure sets the task for financial and electronic monetary institutions to provide detailed information about all transactions carried out using payment cards.

According to the new regulations, Spanish residents, holders of cryptocurrencies located on foreign platforms, are required to submit a tax return as of December 31, 2023 by the end of March next year. This requirement is addressed to individuals whose virtual assets exceed the amount of €50,000, which is equivalent to approximately $54,000 at the time of regulation.

Often, measures to tighten tax control over cryptocurrencies are caused by world precedents, for example, the recent operation of the German police, which confiscated about 50,000 BTC – a cryptocurrency worth $ 2.17 billion at the time of withdrawal, obtained from illegal activities.

Thus, the Spanish authorities demonstrate a desire to ensure fair and transparent taxation in the field of cryptocurrencies, as well as a desire to prevent financial abuse and contribute to a more effective fight against economic and financial crimes.